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Trian proposes shake-up to P&G's structure and strategy

Procter & Gamble on Thursday said activist investor Nelson Peltz's plan to boost shareholder value would result in higher costs, lower profits and another restructuring that could lead to a breakup of the company.

Peltz's Trian Partners released its long-awaited proposal on Wednesday, and called for P&G to be organized into "three largely autonomous business units under a lean holding company".

P&G said it had studied several organizational structures, including the one proposed by Peltz, and concluded it would result in higher costs, lower efficiency, reduced profits, and an added layer of management complexity.

Trian, P&G's fifth-largest shareholder, has been locked in a prolonged battle with the consumer products conglomerate, raising investor hopes of a break-up of the company.

P&G's shares, which have risen 5.5 percent since Peltz announced his stake in the company in February, were slightly higher before the opening bell.


  • Three easy pieces: Nelson Peltz explains how to fix Procter & GambleWCPO
  • Hedge fund activist wants to reorganize Procter & Gamble into three business unitsCNBC
  • Nelson Peltz wants to split up P&G into 3 businessesNew York Post
  • Peltz Targets 'Insular' Culture in 93-Page Procter & Gamble Reform
  • Hedge fund vision: Fewer P&G units, more
  • Procter & Gamble Presents at Barclays Global Consumer Staples ConferenceBusiness Wire (press release)
  • Procter & Gamble fires latest salvo in battle with activist investor Nelson PeltzMarketWatch
  • Five things you need to know today, and could Cincinnati become Amazon's 'HQ2'?Cincinnati Business Courier
  • P&G told it must modernise, digitise as Peltz escalates

This post first appeared on The 5th News, please read the originial post: here

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Trian proposes shake-up to P&G's structure and strategy


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